Multi-Million LPG Contract Based On New Supply Model

Trade News

Using a completely new and innovative supply model, Afrox has secured a multi-million rand five-year contract to supply LPG to all companies in the Massbuild group, including Builders Warehouse, Builders Trade Depot and Builders Express outlets nationwide. The new contract is worth almost triple the previous supply contract, which was limited to Builders Warehouse outlets.

Supply of welding products and filling equipment is included, to support Massbuild's strategic objective of offering its customers a complete LPG solution that incorporates refilling customer cylinders.

Over and above this contract, Afrox has also entered into a specific winter LPG supply agreement with Massbuild, whereby Afrox has undertaken to deliver a specific amount of LPG in 9 kg cylinders throughout the winter months for the duration of the main contract. Based on this commitment, Massbuild is poised to advertise quite vigorously the message that it has the LPG solution for this winter. "Builders Warehouse has chosen Afrox as a preferred supplier to ensure that South Africa does not run out of gas this winter. Through the exclusive partnership with Afrox, Builders Warehouse will have the most gas in the market, with approximately 84 000 9 kg cylinders. Whether the customer is looking at cooking, heating or lighting solutions for their home this winter, Builders Warehouse, Builders Express and Builders Trade Depot will have the gas solution on hand, says Massmart Senior National Buyer, Kobus de Jager.

Marietha du Toit, Account Manager: National Contracts, says special processes have been introduced in the supply chain, Customer Service Centre, marketing and sales activities to meet this supply commitment during the winter of 2011 and to ensure that the winter deal will be a success.

"What makes these supply agreements exciting, is that they have been awarded to us against very stiff competition. â€œThis contract has effectively given us an opportunity to prove to this valuable customer that we can not only meet, but exceed, the service levels required to meet Massbuild's nationwide requirements. This is a massive challenge to us, with immense potential.

"I believe that this new model represents the way forward to service our larger customers effectively, to reclaim our lost market share and to rebuild our brand," concludes du Toit.